Real Estate Program - psers

ecommended that one building be sold from an industrial park owned by PSERS). The
reasons for the recommendation must be discussed with sufficient analysis to support the
hold/sell recommendation. The analysis should include a discounted cash flow of the
investment over its anticipated holding period.
In addition to the hold/sell recommendation, the asset management plan will include an
investment disposition plan with the following elements at a minimum:
- Projected timing of sale that would maximize PSERS' holding period return
- Anticipated structure of disposition (outright sale, partial sale, etc.)
- Identification of potential buyers - by type, or identity, if possible
- Process for implementation of disposition decisions including the use of brokers,
engineers and other professionals
- Estimated sales proceeds, costs of sale and net disposition proceeds
- PSERS' projected internal rate of return over the projected holding period
External Reporting:
Property Managers and Leasing Agents:
REPORTING
• Advisors will establish monthly reporting guidelines for Property Managers and Leasing
Agents.
Advisors:
Within 45 days of each calendar quarter, the Advisors will provide the MDPMRE with a report
on each investment containing the following:
• Property summary including property name, address, occupancy, and a brief
description of its improvements and the investment structure
• Current value accrual basis financial statements including a statement of Assets and
Liabilities, and a Statement of Operations comparing the current period and year-todate
activity to budget
• Litigation report summarizing the status of any current of potential litigation
• Update on the progress of each property in relation to its asset management plan
goals and objectives specifically commenting on:
• Marketing conditions (occupancy levels and trends, leasing and sales activity,
etc.)
• Property occupancy and leasing activity
• Status of planned capital expenditures including environmental hazard
abatement projects
Approved March 13, 2009 V-20